Best Advice You Could Give A Beginner?

Invest in a systematic trading strategy with proven backtesting and live test on a paper trading account until one gains the confidence to use it live.
 
kteira said:
Hi to the people that do happen to read this,
I'm quite new to trading and I’ve saved a bunch of videos to my watch later on youtube concerning the topic. It does seem a bit hard but I really want to learn how to trade within a year. I don’t care if I have to push myself and miss out of hours of sleep, it’s something that i’m passionate about, but I don’t really know where to start. I understand stocks and how there are many different ways of reading them, but how do I actually trade? It’s a vague question I know. But how do I make sure that when I actually start trading with actual money, I do get (even if it’s $5) back??? I’ve read Rich Dad Poor Dad by Robert Kiyosaki, which is more about investing, which is also of interest to me. I am quite scared, because I have heard that most traders are successful in the beginning, but eventually the cookie crumbles. I'm young, reckless, I do spend my money on silly stuff, but you have to fall to rise right?

In short, how do I trade and how do I read the trading apps/websites such as plus500 or metatrader??
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Geezus, so many damn gurus and their sage advices. Kid, the best thing you can do is to not listen to any of the above nonsense (other than to stay out of the market).
 
After blowing up 4 accounts the best advice I've got (it took decades for this to sink in and 2019 is my first profitable trading year):
- Don't risk more than 1 to 2 percent of you account on anyone position - especially while you are learning
- Learn to take a loss
- I would get your portfolio house in order first - buy and hold, dollar cost average, rebalance at least once a year (do a search for "Warren Buffett SP500")
- Learn to trade using only a fraction of your portfolio (10 to 20 percent)
- 3 to 5 years of hard work before getting to profitability is very realistic number
 
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kteira said:
.... I am quite scared, because I have heard that most traders are successful in the beginning, but eventually the cookie crumbles. I'm young, reckless, I do spend my money on silly stuff, but you have to fall to rise right?.....
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My best advice, LEARN....
what-to-do-after-shtf.jpg
 
drcruz said:
After blowing up 4 accounts the best advice I've got (it took decades for this to sink in and 2019 is my first profitable trading year):
- Don't risk more than 1 to 2 percent of you account on anyone position - especially while you are learning
- Learn to take a loss
- I would get your portfolio house in order first - buy and hold, dollar cost average, rebalance at least once a year (do a search for "Warren Buffett SP500")
- Learn to trade using only a fraction of your portfolio (10 to 20 percent)
- 3 to 5 years of hard work before getting to profitability is very realistic number
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Risk management is ignored by a lot of traders. By risking only 2% or even 1% on each trade, you minimize the risk of blowing up your account. This applies to all traders. Limit your number of trades too, I limit myself to 5 trades. That is 10% of your account at risk on a worst case scenario if you lose all those 5 trades. Still, you live to fight another day. Most times, you will lose less than 2%. Your gains should be several multiples of your losses. That way, you can cover those small losses then, make monies on top of that.
 
southall said:
'Buying the dip' is still a form of bottom picking.
It can be profitable with the correct risk management. But by no means is it the holy grail. Except in hindsight. But then nearly everything looks like the holy grail in hindsight.
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OK so nothing is the holy grail. But what gives you good odds? Going with the market or assuming that you know when the market will turn? Of course the earlier you're in the trend the better which is why most people want to top and bottom pick,because they're too late and a market turn let's them get in earlier. But generally, the trend keeps going until it doesn't.

By the way absent the PPT (which is a huge problem for going short) the market behaves very differently when it is turning vs when it is dipping. Turn is usually slightly flat then violent and sudden. Dip is usually confusion. Usually of course. But now that the PPT is a market manipulator.... Even violent downturns like in Dec 2018, are not allowed to complete

https://www.reuters.com/article/us-usa-treasury-explainer-idUSKCN1ON0WG
 
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